Overseas Development Assistance

Debate between Lord Agnew of Oulton and Lord Purvis of Tweed

Wednesday 14th July 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, I respectfully disagree with the noble Lord. We have not broken our own laws. As I pointed out in my supplementary answer to my noble friend, this is a suspension of the current percentage which is allowed under the original Act. We have committed through the debate yesterday that we will revert to the original Act’s commitment when the economy allows us to do so.

[Lord Purvis of Tweed (LD)]

My Lords, as the sponsor of the legislation through this House, I calmly say to the Minister that, when he refers to the spirit of the legislation, that spirit was based on a two decades-long consensus that we should not only meet our obligation to the world’s poorest but sustain it. We have enshrined it in a law that the Government are now moving away from, using executive authority. If the Government wish to bring forward changes, they should bring forward legislative changes and not simply Motions. My question to the Minister is very simple and he will have the answer because it is in his briefing pack, I am sure. If the new fiscal tests are linked to the pandemic, it follows that they would have been met when we did not have a pandemic. Under which calendar year in the past have those physical tests been met?

[Lord Agnew of Oulton (Con)]

Just to restate the point, Section 2 of the 2015 Act envisages circumstances in which the 0.7% target is not met due to

“economic circumstances and, in particular, any substantial change in gross national income”

and

“fiscal circumstances and, in particular, the likely impact of meeting the target on taxation, public spending and public borrowing”.

We last met those requirements in 2018-19.

Covid-19: Public Wealth Investment Fund

Debate between Lord Agnew of Oulton and Lord Purvis of Tweed

Tuesday 9th June 2020 Lords Chamber

[Lord Agnew of Oulton [V]]

Our first priority as a Government has been to try to protect the productive capacity of the economy, which is why we have one of the most generous furlough schemes in Europe. On the hospitality side, we have provided cash grants of £10,000 for properties with small rateable values of under £15,000, and cash grants of £25,000 for those with a rateable value of between £15,000 and £51,000. We will continue to monitor how the leisure sector recovers from this crisis.

[Lord Purvis of Tweed (LD)]

At the time of the Budget, the OBR forecast that taxpayer losses in the RBS had increased to £4.7 billion compared to the Government’s estimate of just two years ago. Would it not be better for British businesses across the UK to think more creatively about the use of our shares in RBS and to expand the role of the British Business Bank, established by Sir Vince Cable during the coalition, so that we can see the early stages of a genuine UK-wide investment wealth fund?

[Lord Agnew of Oulton [V]]

I agree with the noble Lord on the role of the British Business Bank, which has played an extremely important part in the economy over the last few years. It has given some £7 billion of finance to almost 95,000 SMEs and has been part of the distribution for much of the support over the last few months. We will continue to review the greater part that it can play.

Tax Avoidance

Debate between Lord Agnew of Oulton and Lord Purvis of Tweed

Wednesday 29th April 2020 Lords Chamber

[Lord Agnew of Oulton]

I think that most of us share the noble Baroness’s views on abusive tax measures by companies. Apart from all the measures that we have introduced over the past seven or eight years, we announced that we will legislate this year in a Finance Bill for 2021 to strengthen HMRC’s existing anti-avoidance powers to make it more difficult for promoters, in this case, to sidestep their obligations. We will continue to bear down wherever we can.

[Lord Purvis of Tweed (LD)]

One measure highlighted by the Minister was the new tax evasion offence for corporations and partnerships that do not act properly in their operations. Will the Minister consider expanding that offence to include enterprises that aggressively pursue individuals—mainly those who are potentially vulnerable or re-entering the workforce, such as NHS workers. Tax evasion is an act that morally subverts the law, especially for self-employed people who will have to pay extra tax at the end of this crisis.

[Lord Agnew of Oulton]

I am sure that the noble Lord will contribute to the legislation when it comes through. I support his ideas. I assure noble Lords that we have closed the tax gap quite dramatically over the past 10 years. In 2005-06, it was £4.9 billion; in 2017-18, it was £1.8 billion. HMRC has won 90% of the avoidance cases that it has litigated on since 2018.

Covid-19: Self-employed

Debate between Lord Agnew of Oulton and Lord Purvis of Tweed

Thursday 23rd April 2020 Lords Chamber

[Lord Agnew of Oulton]

My Lords, we estimate that 95% of small businesses will benefit from the structure of the schemes we have been discussing. Beyond that, we have made enhancements to the universal credit system that will benefit small business proprietors who are caught and do not benefit from the broader measures. I can put into Hansard a detailed explanation of how those changes work, because they are quite complicated and I am conscious of the need for brevity.

[Lord Purvis of Tweed (LD)]

The self-employed will have to wait another month before they can start applying for support, and it will be six weeks from now until the first payments. The Canadian Government announced support packages for the self-employed and the employed on 15 March, and payments started to be processed last week for Canadian businesses. What is preventing the Government fast-tracking support for self-employed people, who have this huge uncertainty, especially women and mothers who have to look after children and on whose income this will have a real impact now?

[Lord Agnew of Oulton]

My Lords, as I mentioned earlier, we have pushed out some £6 billion of grant payments already, and when HMRC opened its Coronavirus Job Retention Scheme on 20 April some 185,000 claims had already been made. So the money is going out, but I accept that it needs to go out more quickly.